Hong Kong (China) calls for investment from Vietnam

In addition to cellphones and components, fiber is one of the major export items from Vietnam to the Hong Kong (China) market.

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NDO/VNA – Hong Kong (China) is currently an ideal destination for Vietnamese firms to expand operations abroad, heard a round-table seminar in Ho Chi Minh City on August 13.

Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s Ho Chi Minh City Branch, held that Vietnam and Hong Kong (China) are key major trade partners of each other with bilateral trade reaching US$9.2 billion in 2017, up 22% from 2016.

As of June 2018, Hong Kong (China) was the sixth largest foreign investor in Vietnam with a total capital of nearly US$19 billion, he said.

With the ASEAN-Hong Kong (China) free trade agreement, trade and investment between Vietnam and Hong Kong (China) are both expected to grow fiercely in the near future. Vietnam is encouraging firms to expand investment abroad to popularise Vietnamese products across the world.

Thanh hailed Hong Kong (China) as a free, developed economy with a strategic location, modern infrastructure, and large capital inflows.

According to him, if Vietnamese enterprises venture onto this market, they could access a massive capital source and tap into one of the world’s busiest seaports, thereby bringing goods to even further markets.

He lauded Hong Kong (China) for its active international business environment, convenient business registration procedures, modern infrastructure, and low tariffs, adding that it now has a mechanism to provide support for newly-established and mature firms, from planning and opportunity evaluation to visa application and marketing.

Phillips said business opportunities in Hong Kong (China) are widespread for Vietnamese enterprises. However, other issues should be considered, including high office rent, workforce costs, and intense competition with other multinational corporations, he noted.

Therefore, the IK representative suggested opening sales, marketing, and financial offices in Hong Kong (China) to tap into existing advantages in managing supply chains, while placing logistics facilities and warehouses elsewhere in order to save costs.